The Impact of the Financial Crisis During the Russia–Ukraine War on Room Rates and Occupancy in Midscale, Upper Upscale, and Luxury Hotels in the Helsinki Hotel Market
Saejueng, Teeraphong (2026)
2026
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202605018849
https://urn.fi/URN:NBN:fi:amk-202605018849
Tiivistelmä
There are several factors affecting the demand for hotels from customers, both internal and external. Currently, the tourist industry in Finland, especially the hotel industry, faces a challenging situation from the external crisis of the neighboring country, the Russia-Ukraine war. The research aims to investigate how the Russia-Ukraine war impacts the occupancy rate and Average Daily Rate in the hotel market in the Helsinki area. The research is focused on the perspective of management and statistical data to identify the extent to which the hotel occupancy rate and average daily rate are impacted by the war.
The theoretical framework used in this research comprises Hotel Market, Revenue Management, External Crisis, Occupancy Rate, Average Daily Rate (ADR), and the Relationship between ADR & Occupancy. The research used qualitative interviews with professionals as primary data and quantitative analyses as secondary data from 2019-2024. Thematic analyses are used in both primary and secondary data in 5 different themes: Change in demand, Pricing strategy (ADR), Occupancy changes, Domestic vs international demand, and Impact of the Russia-Ukraine war.
The finding demonstrated that the Russia–Ukraine war has an indirect effect on the occupancy and average daily rate of 3 different hotel categories, midscale, upper-scale, and luxury in the Helsinki area. The war impacts more international demand than domestic demand, especially tourists from Russia and Asia, who are one of the major luxury hotels’ customers in the Helsinki area; therefore, the domestic tourist demand plays a central role during the war period.
To summarize, the research insight is that hotels in Helsinki are sensitive to the external crisis, the Russia-Ukraine war, but not solely. In fact, the main factors affecting hotel occupancy and average daily rate include several factors such as market conditions, competition, and customer behavior. The findings of this research offer practical implications for hotels in Helsinki or more broadly to confront the uncertain situation in terms of price strategy, cost effectiveness, adaptation of marketing strategy, and human management.
The theoretical framework used in this research comprises Hotel Market, Revenue Management, External Crisis, Occupancy Rate, Average Daily Rate (ADR), and the Relationship between ADR & Occupancy. The research used qualitative interviews with professionals as primary data and quantitative analyses as secondary data from 2019-2024. Thematic analyses are used in both primary and secondary data in 5 different themes: Change in demand, Pricing strategy (ADR), Occupancy changes, Domestic vs international demand, and Impact of the Russia-Ukraine war.
The finding demonstrated that the Russia–Ukraine war has an indirect effect on the occupancy and average daily rate of 3 different hotel categories, midscale, upper-scale, and luxury in the Helsinki area. The war impacts more international demand than domestic demand, especially tourists from Russia and Asia, who are one of the major luxury hotels’ customers in the Helsinki area; therefore, the domestic tourist demand plays a central role during the war period.
To summarize, the research insight is that hotels in Helsinki are sensitive to the external crisis, the Russia-Ukraine war, but not solely. In fact, the main factors affecting hotel occupancy and average daily rate include several factors such as market conditions, competition, and customer behavior. The findings of this research offer practical implications for hotels in Helsinki or more broadly to confront the uncertain situation in terms of price strategy, cost effectiveness, adaptation of marketing strategy, and human management.